Canadian consortium launches RNG investment fund

In Canada, Xebec Adsorption Inc. and Fonds de solidarité FTQ have created the GNR Québec Capital L.P. investment fund. With an initial capitalization of C$20 million, this new investment vehicle aims to increase renewable natural gas (RNG) production in Québec. Partners, particularly from the agricultural and municipal sectors, will have access to the capital and expertise needed to develop and operate efficient facilities to treat organic waste. The creation of a fund of this type for renewable natural gas projects is a first in Québec.

Xebec and the Fonds will each initially invest C$10 million into the partnership. Over time, Xebec and the Fonds expect that the partnership could receive an aggregate C$100 million in equity capital from Xebec, the Fonds and other investors. Xebec and the Fonds’ initiative could, with a 75:25 debt to equity ratio, fund 12 to 15 renewable natural gas projects in Québec with an aggregate investment of C$400 million over the next decade. The general partner, GNR Québec Capital Management Inc., overseen by a Board of Directors nominated by Xebec and the Fonds will be managing the partnership.